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HomeMy WebLinkAbout2071 OrdinanceCITY OF PASCO, WASHINGTON ORDINANCE NO. 2071 AN ORDINANCE of the City of Pasco, Washington, providing for the issuance of $895,000.00 par value of "Limited Inter -City Bridge General Obligation Bonds, 1979," of the City to provide the moneys required to repay the State of Washington the City's remaining obligation including principal and interest thereon estimated to August 1, 1979, in the total sum of $786,150.00 under the Agree- ment entered into between the City and the City of Kennewick, Washington, under date of January 23, 1975, as supplemented by various Supplemental Agreements thereafter entered into between such parties, pertaining to the financing of the Pasco -Kennewick Inter -City Bridge Project over the Columbia River as originally authorized by Ordinance No. 1434 passed by the City Council and approved by the Mayor on July 7, 1970, and to pay the City's share of the cost of demolition of the old Pasco -Kennewick Bridge and the cost of the issuance of the general obligation bonds herein authorized; specifying the maturities and fixing the form and maximum effective interest rate of such bonds; establishing a "Limited Inter - City Bridge General Obligation Bond Fund, 1979;" and providing for the sale of such bonds. WHEREAS, the City of Pasco, Washington (the "City"), heretofore committed itself to the construction of the Pasco - Kennewick Inter -City Bridge Project and by Supplemental Agreement entered into by and between the City and the City of Kennewick, Wash- ington, and the State of Washington acting by and through the Washington State Highway Commission and the Department of Highways dated July 15, 1975,.the City agreed that by no later than July 29, 1975, it would adopt an appropriate ordinance authorizing the issuance of general obligation bonds in a total amount of $1,163,000.00, the proceeds of which would be pledged to pay the City's share of construction costs as provided in the Agreement dated January 23, 1975, and the City authorized the issuance and sale of such bonds so authorized from time to time, subject only to the limitations of indebtedness of cities as set forth in RCW 39.36.020(2), and pursuant to such Supplemental Agreement, Ordinance No. 1723 was passed by the City Council and approved by the Mayor on July 15, 1975, authorizing the issuance of general obligation bonds in such total amount but not to exceed the amount as may be permitted constitutionally or statutorily at the time of issuance of such bonds to provide the remaining matching funds and the local share required to complete the Pasco -Kennewick Inter -City Bridge Project; and WHEREAS, pursuant to Ordinance No. 1813 passed August 31, 1976, the City issued its "Limited Inter -City Bridge General Obliga- tion Bonds, 1977," dated January 1, 1977, in the total principal amount of $720,000.00, being the maximum amount which the City could legally issue at that time within the limit up to 3/4 of 1% of the value of the taxable property within the City permitted without a vote of the electors to provide a portion of the City's share of funds required to complete the construction of the Pasco - Kennewick Inter -City Bridge Project; and WHEREAS, the City of Kennewick, Washington, and the City (as the "Agency") and the State of Washington entered into various Supplemental Agreements supplemental to the original agreement entered into between the parties under date of January 23, 1975, whereunder the State of Washington provided State motor vehicle funds required to enable such cities to obtain federal -aid matching funds for the completion of the project in accordance with and to meet the obligations becoming due and payable under federal law and certain federal -aid project agreements, such advances by the State to the cities being deemed a loan to be repaid to the motor vehicle fund through withholding of a portion of the cities' motor vehicle fuel tax apportionments; and WHEREAS, the City has determined it to be in the best interests of the City and its taxpayers that its remaining obliga- tion to repay the State of Washington for such advances be satisfied from the proceeds of the issuance and sale of general obligation bonds anticipated to be issued bearing an interest rate less than that required to be paid to the State of Washington and thereby resulting in an interest saving to the City and that the City contribute its share to the cost of demolition of the old Pasco - Kennewick Bridge; and WHEREAS, the actual and assessed valuation of the taxable property of the City as ascertained by the last assessment for City purposes for the calendar year 1979 is $221,725,732.00, and at the time of the passage of this ordinance, the existing outstanding general indebtedness of the City consists of $807,000.00 par value of general obligation bonds and -$30,000 of interest-bearing warrants issued within the limit up to 3/4 of 1% of the value of the taxable property within the City permitted without a vote of the electors, and -3- $1,079,000 par value of general obligation bonds issued within the limit of 2-1/20 of the value of taxable property within the City permitted pursuant to a vote of the electors within the City for general municipal capital purposes, and the amount of indebtedness for which bonds herein authorized to be issued is $895,000.00; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN, as follows: Section 1. The City of Pasco, Washington (herein called the "City"), shall borrow money on the credit of the City and issue negotiable general obligation bonds evidencing such indebtedness in the amount of $895,000.00 to provide the money required to repay to the State of Washington the City's remaining obligation, including principal and interest thereon estimated to August 1, 1979, in the total sum of $786,150.00, under the Agreement entered into between the City of Kennewick, Washington, and the City (as the "Agency") and the State of Washington under date of January 23, 1975, as supplemented by various Supplemental Agreements thereafter entered into between such parties, pertaining to the financing of the Pasco - Kennewick Inter -City Bridge Project over the Columbia River as originally authorized by Ordinance No. 1434 passed by the City Council and approved by the Mayor on July 7, 1970, and to pay the City's share of the cost of the demolition of the old Pasco -Kennewick Bridge and the cost of the issuance of the general obligation bonds herein authorized. Such general indebtedness to be incurred shall -4- be within the limit up to 3/4 of 1% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein. Section 2. The bonds shall be called "Limited Inter - City Bridge General Obligation Bonds, 1979" of the City; shall be dated August 1, 1979; shall be in denominations of $5,000.00 each; shall be numbered from 1 to 179, inclusive; and shall bear interest at an effective rate not to exceed 8% per annum, payable semiannually on February 1 and August 1 of each year, as evidenced by coupons attached to the bonds representing interest to maturity with full obligation on the part of the City to pay interest at the bond rate, from and after maturity, until the bonds, both principal and interest, are paid in full. Both principal and interest are to be paid in lawful money of the united States of America at the office of the City Treasurer, or, at the option of the holder, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York. The bonds shall be numbered and mature serially in order of their numbers on August 1 of each year in the amounts and in the maturity years as follows: Bond Numbers Maturity (Inclusive) Amounts Year 1 to 5 $25,000 1981 6 to 11 30,000 1982 12 to 17 30,000 1983 18 to 23 30,000 1984 24 to 30 35,000 1985 31 to 37 35,000 1986 38 to 45 40,000 1987 46 to 53 40,000 1988 54 to 61 40,000 1989 62 to 70 45,000 1990 -5- 71 to 80 50,000 1991 81 to 90 50,000 1992 91 to 101 55,000 1993 102 to 112 55,000 1994 113 to 124 60,000 1995 125 to 137 65,000 1996 138 to 150 65,000 1997 151 to 164 70,000 1998 165 to 179 75,000 1999 Section 3. The City hereby reserves the right to redeem any or all of the bonds outstanding in whole, or in part in inverse numerical order, on August 1, 1989, or on any semiannual interest payment date thereafter, at par plus accrued interest to the date of redemption. Notice of such intended redemption shall be published in the official newspaper of the City at least once not less than thirty nor more than forty-five days prior to the call date, and a copy of such notice shall be mailed within the same period to the original purchaser or the account manager of the underwriter who purchases the bonds. In addition, such redemption notice shall also be sent to Moody's Investors Service, Inc., and Standard & Poor's Corporation at their offices in New York, New York, but the mailing of such notice to such New York corporations shall not be a condition precedent to the redemption of such bonds. Interest on any bonds so called for redemption shall cease on such call date upon payment of the redemption price into the bond redemption fund for the bonds. Section 4. The City hereby irrevocably pledges itself to levy taxes annually, within the constitutional and statutory tax limitations provided by law without a vote of the electors, upon all property in the City subject to taxation in an amount sufficient, together with other money legally available and used therefor, to pay the principal of and interest on the bonds as the same shall accrue, and the full faith, credit and resources of the City are hereby irrevocably pledged for the payment of the principal and interest on such bonds. ing form: Section 5. The bonds shall be substantially in the follow- No. $5,0.000.0. UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF PASCO LIMITED INTER -CITY BRIDGE GENERAL OBLIGATION BOND, 1979 The City of Pasco, Washington (the "City"), is justly indebted to and for value received hereby promises to pay to bearer on the FIRST DAY OF AUGUST, 19—, the sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of % per annum, payable semiannually on February 1 and August 1 of each year, interest to maturity being evi- denced by and payable upon the presentation and surrender of the attached interest coupons as they severally become due, with full obligation on the part of the City to pay interest at the same rate from and after the maturity date, in the absence of coupons, until this bond with interest is paid in full. This bond is payable, both principal and interest, in lawful money of the United States of America at the office of the Treasurer of the City, or, at the option of the holder, at either fiscal agency of the State of Wash- ington in Seattle, Washington, or New York, New York. -7- This bond is one of a total issue of $895,000.00 par value of bonds, all of like date, tenor and effect, except for maturities [and interest rates if more than one interest rate is bid], issued by the City for general municipal purposes, for the purpose of providing the moneys required to repay the State of Washington the City's remaining obligation, including principal and interest thereon estimated to August 1, 1979, in the total sum of $786,150.00, under the Agreement entered into between the City of Kennewick Washington, and the City (as the "Agency"), and the State of Washington under date of January 23, 1975, as supple- mented by various Supplemental Agreements thereafter entered into between such parties pertaining to the financing of the Pasco -Kennewick Inter -City Bridge Project over the Columbia River as originally authorized by Ordinance No. 1434 passed by the City Council and approved by the Mayor on July 7, 1970, and to pay the City's share of the cost of demolition of the old Pasco -Kennewick Bridge and the cost of the issuance of the bonds of this issue, and is issued in full compliance with the ordinances of the City and the laws and Constitution of the State of Washington. The City reserves the right to redeem any or all of the bonds outstanding in whole, or in part in inverse numerical order, on August 1, 1989, or on any semiannual interest payment date thereafter, at par plus accrued interest to the date of redemption. Notice of such intended redemption shall be published in the official newspaper of the City at least once not less than thirty nor more than forty-five days prior to the call date, and a copy of such notice shall be mailed within the same period to [the original purchaser or the account manager of the underwriter who purchases the bonds]. In addition, such redemption notice shall also be sent to Moody's Investors Service, Inc., and Standard & Poor's Corporation at their offices in New York, New York, but the mailing of such notice to such New York corporations shall not be a condition precedent to the redemption of such bonds. Interest on any bonds so called for redemption shall cease on such call date upon payment of the redemption price into the bond redemption fund. The City hereby irrevocably pledges itself to levy taxes annually, within the constitutional and statutory W10 tax limitations provided by law without a vote of the electors, upon all property in the City subject to taxation in an amount sufficient, together with other money legally available and used therefor, to pay the principal of and interest on the bonds of this issue as the same shall accrue, and the full faith, credit and resources of the City are hereby irrevocably pledged for the payment of the principal of and interest on the bonds. It is hereby certified that all acts, conditions and things required to be done precedent to and in the issuance of this bond have been done, have happened and have been performed as required by law, and that the total indebtedness of the City, including this bond issue, does not exceed any constitutional or statutory limitations. IN WITNESS WHEREOF, the City has caused this bond to be signed by the facsimile signature of its Mayor and attested by the manual signature of its City Clerk and a facsimile reproduction of its corporate seal to be imprinted hereon and the interest coupons attached to be signed with the facsimile signatures of those officials this first day of August, 1979. CITY OF PSCO, WASHINGTON By (facsimile signature) Mayor ATTEST: City Clerk The form of the interest coupons shall be substantially as follows: Coupon No. (Unless the bond referred to below has been pre- viously redeemed) On the FIRST DAY OF (FEBRUARY)(AUGUST) 19 , the CITY OF PASCO, WASHINGTON, upon presentation and surrender of this coupon, will pay to the bearer at the office of the Treasurer of the City, or, at the option of the holder, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York, the sum shown hereon in lawful money of the United States of America, that sum being the semiannual interest due that date upon its "Limited Inter -City Bridge General Obligation Bond, 1979," dated August 1, 1979, and numbered CITY OF PASCO, WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile signature) City Clerk Section 6. The bonds shall be printed or lithographed on good bond paper and shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the City Clerk of the City, with a facsimile reproduction of the corporate seal of the City to be imprinted thereon, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 7. There is hereby created and established in the office of the City Treasurer a special fund to be known and designated as the "Limited"Inter-City Bridge General Obligation Bond Fund, 1979." The accrued interest received, if any, shall be paid into the "Limited Inter -City Bridge General Obligation Bond Fund, 1979," and the principal proceeds received from the sale of the bonds shall be paid into the "Inter -City Bridge Construction Fund" of the City created and established by Ordinance No. 1813 and used to repay the State of Washington the City's remaining obligation on such Inter - City Bridge Project and the City's share of the costs of the demolition -10- of the old Pasco -Kennewick Bridge and the costs of issuance and sale of the bonds. All taxes collected for and allocated to the payment of the principal of and interest on the bonds and any other moneys lawfully available therefor by action of the City Council shall hereafter be deposited in the "Limited Inter -City Bridge General Obligation Bond Fund, 1979." The City covenants that it will make no use of the proceeds of the bonds or other funds of the City at any time during the term of the bonds which, if such use had been reasonably expected at the date the bonds are issued, would have caused the bonds to be arbitrage bonds within the meaning of Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and the applicable regulations promulgated thereunder. Section 8. The bonds shall be sold for cash at public sale for not less than par, plus accrued interest, upon sealed bids to be received at the office of the City Manager up to the date and hour stated in the Notice of Bond Sale hereinafter directed to be given. Notice calling for bids to purchase such bonds shall be published once a week for four consecutive weeks in the official newspaper of the City. Such notice shall specify that bids for the purchase of the bonds shall be received at the office of the City Manager at the City Hall, Pasco, Washington, on July 23, 1979, until 2:00 o'clock p.m. local time, and such bids will be publicly opened by the City Manager at such time. The bids will be considered and an award made by the City Council at a special meeting thereof to -11- be held in the Council Chambers in the City Hall on the same date commencing at 8:00 o'clock p.m. local time. A copy of the notice shall, at least three weeks prior to the date fixed for the sale, be mailed to the State Finance Committee, Olympia, Washington. Bids shall be invited for the purchase of the Bonds with fixed maturities in accordance with the schedule specified in Section 2 hereof. The notice shall specify the maximum effective rate of interest the Bonds shall bear, namely, 8% per annum, and shall require bidders to submit a bid specifying: (a) The lowest rate or rates of interest and premium, if any, above par at which the bidder will purchase the Bonds; or (b) The lowest rate or rates of interest at which the bidder will purchase the Bonds at par. Coupon rates shall be in multiples of 1/8 or 1/20 of 1%, or both. No more than one rate of interest may be fixed for any one maturity. Only one coupon will be attached to each of the Bonds for each installment of interest thereon, and bids providing for additional or supplemental coupons will be rejected. The maximum differential between the lowest and highest coupon rates named in any bid shall not exceed 20. For the purpose of comparing the bids only, the coupon rates bid being controlling, each bid shall state the total interest cost over the life of the Bonds and the net effective interest rate of the bid. -12- The Bonds shall be sold to the bidder making the best bid, subject to the right of the City Council to reject any and all bids and to readvertise the Bonds for sale in the manner provided by law, and no bid for less than all of the Bonds shall be considered. The City reserves the right to waive any informality or irregularity in any bid or in the bidding process. All bids shall be sealed, and, except the bid of the State of Washington, if one is received, shall be accompanied by a deposit of $44,750.00. The deposit shall be either by certified or cashier's check made payable to the City Treasurer and shall be promptly returned if the bid is not accepted. If the Bonds are ready for delivery and the successful bidder shall fail and neglect to complete the purchase of the Bonds within forty days following the acceptance of its bid, the amount of its deposit shall be forfeited to the City and in that event the City may accept the bid of the one making the next best bid. The good faith deposit will be applied upon the purchase price of the bonds at the time of settlement and, pending the delivery of the bonds, the City may invest such good faith deposit solely for its benefit. If there be two or more equal bids for not less than par plus accrued interest and such bids are the best bids received, the City Council shall determine by lot which bid shall be accepted. The Bonds will be delivered to the successful bidder at the office of the City Treasurer, or in the City of Seattle, at the City's expense, or at such other place as the City Treasurer and the successful bidder may mutually agree upon at.the -13- purchaser's expense. A no -litigation certificate in the usual form will be included in the closing papers. Any bid presented after the hour specified for the receipt of bids will not be received, and any bid not accompanied by the required bid deposit at the time of opening such bid will not be read or considered. The City Clerk shall be and is hereby authorized and directed to publish notice of the purchase of the Bonds in the manner required by law in accordance with the provisions of this section. Such notice shall provide that the City will cause the Bonds to be printed or lithographed and signed and will furnish the approving legal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel of Seattle, Washington, covering the Bonds without cost to the purchaser, the opinion also being printed on each bond. Bond counsel shall not be required to review or express any opinion concerning the completeness or accuracy of any official statement or other sales material issued or used in connection with the Bonds, and bond counsel's opinion shall so state. Section 9. Any act taken pursuant to the authority of and prior to the effective date of this ordinance is hereby ratified and confirmed. Section 10. This ordinance shall take effect five days after its publication as provided by RCW 35A.13.190. PASSED BY THE COUNCIL OF THE CITY OF PASCO, WASHINGTON, -14- �. '* • tin ' , , AT A SPECIAL OPEN PUBLIC MEETIQG THEREOF OF WHICH DUE NOTICE HAD BEEN GIVEN IN THE AANNER REQUIRED BY LAW, AND SIGNED IN AUTHENTICATION THEREOF, THIS 25th DAY OF JUNE, 1979. A E T: City Clerk APP nO-VE Dr, AS TO F Z: -A-City Atto ey Date of Publication: 09� f� 1 Mayor